Arab Investments has completed a deal to take Coffee Republic out of administration.

The property investment company reached an agreement with administrators KPMG to take on the 80 remaining outlets, including 60 in the UK.

The size of the deal has not been revealed but talks have been ongoing for the past two weeks.

King Sturge business recovery partner Fiona Hamilton, pictured, also head of Scottish retail, was heavily involved in negotiations.

She said: "This deal is the UK's largest coffee acquisition and we were pleased to be able to introduce our client to KPMG.

"We have provided operational and strategic acquisition advice, and will continue to advise Arab Investments on strategy moving forward."

All the chain's outlets in Scotland are franchised and the deal will provide greater stability for franchisees.

The new owners prepared to make a substantial investment into developing the Coffee Republic brand, with further expansion of the branch network planned.

Khalid Affara, of Arab Investments, said: "We are delighted to have completed the acquisition of Coffee Republic and we intend to start growing the business with immediate effect. Coffee Republic has a very strong brand name and we are bringing additional investment into the company to expand the number of retail outlets in the UK, and elsewhere."

Richard Hill, joint administrator and KPMG partner, said: "I'm delighted we have agreed the sale of Coffee Republic, rescuing a substantial part of the business, and protecting 62 jobs.

"While coffee shops face tough competition on the High Street in these challenging economic times, the amount of interest we received in Coffee Republic is testament to the strength of the brand.

"I would like to thank the company's employees and suppliers, who have supported the business over the past three weeks, and helped us to achieve this successful outcome."

Arab Investments is a privatelyowned London property investment company. It is developing the tallest building in the City of London, The Pinnacle.

Coffee Republic was formed by Bobby and Sahar Hashemi, a brother and sister team, and opened its first branch in 1995 in South Molton Street, London.